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Messages - Dan

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91
Bloomberg Law News 2021-02-24T10:13:14621-05:00
IRS Wins in ‘Extreme Test’ of Credit Card Reward Tax Status
By Jeery Leon 2021-02-23T17:05:24000-05:00
The IRS can tax more than $300,000 in credit card rewards because they were used to purchase prepaid
debit cards and money orders rather than goods or services, the U.S. Tax Court ruled.
Konstantin Anikeev and Nadezhda Anikeev used their credit cards and prepaid gift cards to purchase
money orders which they then deposited into their bank accounts. The rewards they reaped through their
credit cards alone aren’t includible as income, the Tax Court said, adding that the case is an “extreme test
of the longstanding nontaxability of credit card reward programs.”
But the gift cards and money orders are cash equivalents—an “accession to wealth” under tax code
Section 61, Judge Robert Goeke said in his opinion, siding with the IRS. Goeke said the holding is based on
the fact that money order purchases and debit card reloads are incompatible with an IRS policy that
allows credit card rewards for the purchase of goods and services to be excluded from income.
The IRS determined deficiencies of about $103,000 for 2013 and 2014 and argued the pair should have to
recognize $312,046 in additional income stemming from the rewards.
The Anikeevs had alleged that the gift cards are goods and services and their subsequent use is irrelevant.
The IRS had argued the gift cards should be treated like cash because they were used to purchase money
orders.
Goeke said the court hopes that the IRS in the future polices its policy “in regulations or public
pronouncements rather than relying on piecemeal litigation.”
Jeffrey M. Sklarz of Green & Sklarz LLC, representing the Anikeevs, and the IRS didn’t immediately respond
to requests for comment.
The case is Anikeev v. Commissioner , T.C., No. 13080-17, 2/23/21 .
To contact the reporter on this story: Jeffery Leon in Washington at jleon@bloombergindustry.com
To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com;
Colleen Murphy at cmurphy@bloombergtax.com
They seem to be reading it differently than me.

92
Any way around paywall?
Or can you post it?
Bloomberg Law News 2021-02-24T10:13:14621-05:00
IRS Wins in ‘Extreme Test’ of Credit Card Reward Tax Status
By Jeery Leon 2021-02-23T17:05:24000-05:00
The IRS can tax more than $300,000 in credit card rewards because they were used to purchase prepaid
debit cards and money orders rather than goods or services, the U.S. Tax Court ruled.
Konstantin Anikeev and Nadezhda Anikeev used their credit cards and prepaid gift cards to purchase
money orders which they then deposited into their bank accounts. The rewards they reaped through their
credit cards alone aren’t includible as income, the Tax Court said, adding that the case is an “extreme test
of the longstanding nontaxability of credit card reward programs.”
But the gift cards and money orders are cash equivalents—an “accession to wealth” under tax code
Section 61, Judge Robert Goeke said in his opinion, siding with the IRS. Goeke said the holding is based on
the fact that money order purchases and debit card reloads are incompatible with an IRS policy that
allows credit card rewards for the purchase of goods and services to be excluded from income.
The IRS determined deficiencies of about $103,000 for 2013 and 2014 and argued the pair should have to
recognize $312,046 in additional income stemming from the rewards.
The Anikeevs had alleged that the gift cards are goods and services and their subsequent use is irrelevant.
The IRS had argued the gift cards should be treated like cash because they were used to purchase money
orders.
Goeke said the court hopes that the IRS in the future polices its policy “in regulations or public
pronouncements rather than relying on piecemeal litigation.”
Jeffrey M. Sklarz of Green & Sklarz LLC, representing the Anikeevs, and the IRS didn’t immediately respond
to requests for comment.
The case is Anikeev v. Commissioner , T.C., No. 13080-17, 2/23/21 .
To contact the reporter on this story: Jeffery Leon in Washington at jleon@bloombergindustry.com
To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com;
Colleen Murphy at cmurphy@bloombergtax.com

93
OK, I'm confused as to what the outcome is.

Did the judge split the difference and say tax isn't owed on the gift cards? But is owed on direct debit reloads and direct money order purchases?

How do you directly purchase a money order with an AMEX?


94
COVID-19 Discussion Board / Re: Israel (Not) Reopening To Foreigners
« on: February 24, 2021, 10:27:20 AM »
FYI, My daughter is an olah chadasha and she received today (the day of her flight!) a permit by the vaad to leave Israel for her sister’s wedding.
Mazel tov!

95
Just Shmooze / Re: Random Posts
« on: February 23, 2021, 10:10:53 PM »
But it's actually an interesting story, so I was hoping I would get flak for it, so that I can eventually reveal the backstory.

But whatever...


But that's just for posting in the wrong forum.

96
Destination Guides And Trip Planning / Re: Los Angeles Master Thread
« on: February 23, 2021, 10:09:07 PM »
Cholov Stam/Pas Yisroel/Bishul Yisroel
Is this a first?

97
Up In The Air / Re: Baha Mar - COVID Jet?
« on: February 23, 2021, 09:57:49 PM »
As he says, it's never going to happen.

98
Up In The Air / Re: American Airlines Makes Changes To Baggage Allowance
« on: February 23, 2021, 09:31:48 PM »
neither you nor doc mentioned the change most relevant to ddf which is that all tickets to israel including basic economy now have a free bag

http://news.aa.com/news/news-details/2021/American-Airlines-Makes-It-Easier-for-Customers-to-Choose-Their-Travel-Experience-OPS-DIS-02/default.aspx
I don't think they sold BE to Israel until now.

99
COVID-19 Discussion Board / Re: ISRAEL AIRPORT CLOSING ON MONDAY!
« on: February 23, 2021, 04:18:27 PM »
A complete clown show
It's embarrassing and upsetting
Too many cooks in the kitchen.

101
COVID-19 Discussion Board / Re: The current state of COVID-19 in Israel
« on: February 23, 2021, 04:05:39 PM »
Is the Covid Czar making these calls, health ministry, or just politicians ?
Everyone is, hence the mixed messaging.

102
Destination Guides And Trip Planning / Re: South Florida Master Thread
« on: February 23, 2021, 04:03:43 PM »
If they can't commit to you, they're probably not committing to anyone else.  So go straight from the airport, tell them you know check-in is 4:00, but you have a 3:00 wedding, and do they think there's a chance that a room might be available a bit earlier so that you can get dressed?  Then hang out in the lobby, looking hopefully at the front desk...
Yup, as long as you're flexible on the room location, it's very rare that you can't get in by 2 or 3. Often you can get in earlier than that.

103
COVID-19 Discussion Board / Re: COVIDiots
« on: February 23, 2021, 01:19:12 PM »
IMHO, it's a confluence of many factors, which all affect each other. Covid became a political football in the most partisan political environment that our communities were deeply involved in an unprecedented way, a masked person, for instance, is viewed as a Biden voting Libtard; historic distrust of politicians; distrust of public health officials due to initial incompetence, unnecessary deaths in first waves due to awful care, lack of clear, cogent, practical guidelines coming of the first wave; hypocrisy and double standards in guidelines and enforcement; conflating covid rules with gzeiras shmad of years gone by; to an extent, all communities have segments of noncompliance which are highlighted and stick out more when it is frum Jews; probably others I'm forgetting.

This is not an excuse of why are doing what we are, it's a partial explanation of why people are behaving in ways they shouldn't be.
Or...lack of leadership?

104
COVID-19 Discussion Board / Re: COVIDiots
« on: February 23, 2021, 01:17:58 PM »
And then there are those like someone I just heard of yesterday who had covid more than a month ago, is still testing positive, and trying to get back to Israel. If he finds out of a way to forge a negative (AFAIK he isn't looking, this is hypothetical), he'd still be included in this story even though it's not even close to as being as covidiot and malicious as described.
Will Israel accept a NAAT?

105
Destination Guides And Trip Planning / Re: South Florida Master Thread
« on: February 23, 2021, 12:53:36 PM »
Order placed. You should get commission :)
Lol, if only.
Hope you got yourself some too :D

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